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Yes and no. Sterling weakness obviously means higher input costs and importing inflation. If it does pick up further, the BoE will be wary of raising rates given the fragility of the economy. The flipside obviously is the attractiveness of letting inflation tick up to help lower the national debt. Carney needs to be a supreme tightrope-walker to get us through this unscathed.
My observation that the UK is fixated on a strong pound is mostly anecdotal and from personal experience (which is obviously limited by my limited knowledge about other countries), so i'd concede that . However, I know no other country where the exchange rate is permanently displayed on news television (like it is in Sky News) or makes the news quite as often... or is discussed in public so much. But then again that observation might just be wrong on my end because I understand English and consume British media while I don't understand the languages of all the other major economies (Except for USA, Australia, NZ of course).
Fair enough.
Why keep banging on about an 'undervalued' Euro then?
That wasn't my post you quoted. I don't mind much, however would like to point out that the post in your quote isn't my point of view at all
.That wasn't my post you quoted. I don't mind much, however would like to point out that the post in your quote isn't my point of view at all
When queen Victoria was king.
Yes, we hear that a lot, but how so? Say we traded in currency X, and that currency X was double as valuable as the current Euro, what would change? German companies would charge half as much of currency X for their products... and pay half as much of currency X for their imports. Germany has literally no noteworthy natural resources anymore (where an undervalued currency would help). It would damage Germany by not being in the same currency as it's neighbors anymore, and would cause the administrative headache of changing currency... but I still don't see how it would be an disadvantage compared to the US/UK.
There is absolutely no way of knowing... What if the Germans voted in 'Die Linke' and they make one of theirs president of the Bundesbank? We might get inflation on steroids. Or we might vote in the AfD and they do whatever they tell themselves would be good for the D-Mark. After all the talk from the US and UK about us manipulating our currency we might just figure to do exactly that... once we do have our own back. A lot easier for Germany to manipulate a German DMark trading price then Europe's Euro, no?
True enough. But those countries who would have been better off not joining still get there say in today's Euro... Mario Draghi would hardly be ECB president if all the talk about Germany dictating Euro policy were true.
It can only be described as a fixed exchange rate within the Euro though, a fixed exchange rate within a common market largely governed by the same (and if not at least compatible) laws. There is no such thing as a 'natural balance of a rising currency' as the strength of an economy is only one factor in the value of that economy's currency... Many rising economies have and continue to inflate their own currencies... some are hit by inflation without wanting it. The weaker economies within the the eurozone benefit from a stable currency... It's far from perfect, and won't by itself bring anybody prosperity, but please inform me of the mechanisms being proposed to prop up Blackpool, Coventry, Detroit or Flint? Would they be better off just dropping out of the Pound and Dollar?
To point out facts isn't. To claim that "Germany abuses the Euro to take advantage of everyone else", which is being done, is though. It's a blatant lie used for political reasons, what would you call it?
The Euro is of huge practical value to me, and hugely beneficial to this entire region on both sides of the border. Not to speak of the advantages my employer has by not having to deal with a separate currency for every country they do business in (It's not a huge business, and the deals themselves aren't huge, so any costs that come with having separate floating currencies might always potentially be a deal breaker...). But let me be clear on one thing: German goods aren't irreplaceable at all... from all the major economies they are probably the easiest to replace. Which is precisely why Germany needs stability nationally and internationally to continue to be prosperous... A stability we see as being under threat by those using the 'propaganda' I just described.
The Conservative and Unionist partyI genuinely don't understand the world anymore. How does anyone see this stuff and thing its logical or ok? I just had a scan of the comments section of the Express version of this article, and it was like a Viz parody.
